Technical efficiency and its determinants in the Indian domestic banking industry: an application of DEA and Tobit analysis

Sunil Kumar, Rachita Gulati
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引用次数: 21

Abstract

Using cross-sectional data for 51 banks, this paper not only endeavours to measure the extent of technical efficiency in the Indian domestic banking industry, but also explores the most influential factors explaining its variations across banks. The empirical results show that: only 9 of the 51 banks operating in the financial year 2006-2007 are found to be efficient and, thus, define the efficient frontier of the Indian domestic banking industry; the technical efficiency scores range from 0.505 to 1, with an average of 0.792; de novo private sector banks dominate in the formation of the efficient frontier; managerial inefficiency is the main source of Overall Technical Inefficiency (OTIE) in the Indian domestic banking industry; the efficiency differences between public and private sector banks are not statistically significant; significant differences between large and medium banks appear with regard to Scale Efficiency (SE); exposure to off-balance sheet activities and profitability are the most influential determinants of Overall Technical Efficiency (OTE).
印度国内银行业的技术效率及其决定因素:DEA和Tobit分析的应用
利用51家银行的横断面数据,本文不仅试图衡量印度国内银行业的技术效率程度,而且还探讨了解释其在银行之间变化的最具影响力的因素。实证结果表明:在2006-2007财政年度运营的51家银行中,只有9家被发现是有效的,从而定义了印度国内银行业的效率边界;技术效率得分范围为0.505 ~ 1,平均为0.792;新成立的私营部门银行在形成有效边界方面占主导地位;管理效率低下是印度国内银行业整体技术效率低下(OTIE)的主要根源;公共和私营部门银行之间的效率差异在统计上并不显著;大中型银行在规模效率(SE)方面存在显著差异;资产负债表外活动的风险敞口和盈利能力是整体技术效率(OTE)最具影响力的决定因素。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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